Saturday, January 2, 2010

Nifty at significant pivot

The Nifty is now standing at 5200, which is a significant pivot level, looking back over the past 18 months.

A breakout from 5200 resistance may well signal a parabolic rally in the market. A pullback will find support at every dip, so at least for now, the buy on dips strategy should work.

Every breakout is a point of maximum risk. This will also apply to a move above 5200. Risk comes with reward, and, traders who take the trade understand this.

It is freezing cold in Delhi. I talked to my colleague in Chandigarh who told me it is probably colder there. All of North and East India comes under a cold spell from mid december to mid february. Many people commute for one and half hours, to reach their work places. Asking employees to come to work at 8:00 AM is unfair because the early trading is unlikely to result in any added value.



Danish Kapur said...

Early Trading may not be good for people living in India but it is good for us in New York. We can sleep early :)

Amit T said...

Hi Mr. Sukhani

I have always valued your comments on trading with technical data n analysis. In my understanding and inference the real big rally, if it happens should be after nifty crosses ~5500 i am not saying this because nifty is at 5200 now but a trend line barrier and contracting range theory. i have only done 25 trades in my lifetime as a trader (24 months)